Govt's Fresh Start

With 157 lawmakers out of the total of 268 voting in favour of the confidence motion, Prime Minister Pushpa Kamal Dahal Prachanda has won the vote of confidence in the House of Representatives. This is the third time he had to secure the trust vote after he became the Prime Minister in December 2022. With this result, a way has been paved for the government to get down to business with full confidence. Now the government has no option but to inject a dose of momentum to development projects, both initiated and in the offing. The Prime Minister has to his credit the landmark agreement with India he inked last year to export 10,000 MW of electricity over the next decade. People have high hope that cross-border electricity trade will change their fortune.

Needless to say, works that yield tangible and impactful results define the performance of the government. The government is making a fresh start at a time when the economy is turning the corner to inspire optimism. Though the economy's external indicators – like remittance, foreign exchange reserves, FDI and inflation, among others – have turned sanguine, the dearth of effort in improving the internal indicators, such as productivity and performance of the industries, is something still to worry about. Against this backdrop, resting on the laurels is not an option. The government's sweeping reforms in the banking and financial sectors, coupled with prudent monetary policy measures are said to have worked to lower the base interest rate of banks to single digit. 

Simultaneously, there has been notable decline in loan interest rates, signaling a favourable environment for borrowers. Net FDI has significantly improved. There has also been modest decrease in inflation, to the slight relief of the consumers. That said, there is a long list of challenges to be addressed. We no longer can afford to let the longstanding issue of usury victims persist.  The Prime Minister has time and again pledged to work to bolster federalism. But a problem as basic as a lack of enactment of laws and by-laws has continued to cripple the functioning of the provinces. Disputes over authority that has not only stood in the way of recruiting and deploying workforce, including police force, but has also adversely affected the coordination between the provincial governments and the federal government. 

The government has no time to delay if it wants to see the implementation of federalism in full scope. While some provinces have fared relatively well, others have been stuck in underdevelopment. Plugging this disparity would mark a bold step towards meeting the goal of the constitution. The challenge of retaining youths by providing them with jobs that pay enough to provide for the family and lead a decent life needs to be addressed before it becomes insurmountable. 

The perennial problem of abysmally low capital expenditure, which has been constricting the arteries of the economy, has now seeped into the provinces. This must not happen. Impetus should also be given for the implementation of the common minimum programmes, which have been in the works for long now. Stability of the government lays the ground works of development. Toppling of governments in quick succession is a deterrent to attracting FDI and to creating an environment conducive to thriving businesses. A stable government completing its course without hitches is the need of the hour.